A new criminal offence of causing "nuisance or harm" while trying to buy or sell sex would be created, making it easier for police to deal with kerb-crawlers and vice girls in residential areas such as Leith.

However, his proposals do leave the door open for some form of controlled red light district, provided it is outside residential areas and the council and other local agencies agree.

These plans would have to be aimed at "managing risk and nuisance" and ensuring the "impact of redevelopment of areas traditionally used for street prostitution" is controlled.

The new law is thought to be wide-ranging enough to make it easy for police to take action against both kerb-crawlers and prostitutes in any area where they are bothering other people.

The Scottish Executive formed the Expert Group on Prostitution two years ago after Lothian MSP Margo McDonald proposed the creation of red light tolerance zones for vice girls.

The group - led by former Strathclyde Police assistant chief constable Sandra Hood - suggested councils may wish to "consider the need" for managed areas for street prostitution.

Today, Mr Henry spoke out against the idea, despite giving local authorities the opportunity to develop some kind of managed prostitution area. He said: "We do not support tolerance zones. There is little evidence that they are effective either in protecting women involved in street prostitution, or the communities affected by it."

Under the Scottish Executive's plans, local authorities could appoint agencies, such as the Edinburgh-based prostitute support group Scotpep, to run services such as needle exchange schemes and other programmes to help prostitutes in a particular area.

As long as soliciting was taking place in an area where it was not disturbing other people, the new laws would allow the police and the council effectively to turn a blind eye if they so choose.

An unofficial tolerance zone was located in Coburg Street in Leith for around 15 years until 2001, when it was moved by police to Salamander Street.

Today's report from the Executive said that the redevelopment of Leith had created a "fragmented and volatile" situation for prostitutes working there.

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